EAPD英文课程 Week 9.ppt

TOC Example HPI manufactures both the second generation (HPI-2) and the third generation (HPI-3) of hearing aids. Prices are competitive at $600 and $1,200, respectively, and are not expected to change. The monthly number of orders for HPI-2 is 3,000 units and for HPI-3 is 1,800 units. New customers are told they may have to wait three weeks or more for their orders, and management is concerned about the need to improve speed in the manufacturing process. Step 1: TOC Example Step 1: Identify the Constraint Develop a flow diagram, which shows the sequence and time of each process Use the flow diagram to identify the constraint for HPI (see example, next slide) There is difficulty maintaining adequate staffing in all process areas except process 5 The constraint occurs in process 4, perform final assembly and test; the other four processes have slack time Flow Diagram: TOC Example ElectronicComponents Price = ￡300 AssembleEarpiece 110 min. Install OtherElectronics 40 min. Final Assemblyand Test 30 min. Pack andShip 25 min. ComputerChip Price = ￡450 Test and Program 30 min. Install OtherElectronics 40 min. ElectronicComponents Price = ￡300 AssembleEarpiece 130 min. Final Assemblyand Test 60 min. Pack andShip 25 min. HPI-2 HPI-3 Step 2: TOC Example Step 2: Determine the most profitable product mix given the constraint The most profitable mix provides the maximum total profits for both products First, using throughput margin determine the most profitable product given the constraint Throughput margin = selling price less materials cost In the example, the relevant measure of profitability is throughput margin per minute in final assembly and testing Step 2: TOC Example (continued) As can be seen, HPI-3 has a higher throughput margin. In the absence of constraints, this product would be more profitable, but with the time constraint in process 4, HPI-2 is the more profitable product. Step 2: TOC Example (continued) HPI will produce all 3,000 units (